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The Global Institutionalization Within the Framework of WTO As a Growth Driver of Ukraine’s Foreign Trade
Sholom A. S., Kazakova N. A.

Sholom, Alina S., and Kazakova, Nadezhda A. (2019) “The Global Institutionalization Within the Framework of WTO As a Growth Driver of Ukraine’s Foreign Trade.” Business Inform 4:48–54.
https://doi.org/10.32983/2222-4459-2019-4-48-54

Section: International Economic Relations

Article is written in Ukrainian
Downloads/views: 3

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UDC 339.52:330.341.2(477)

Abstract:
Since inception more than 20 years ago of the World Trade Organization (WTO), as the main institutionalizing force in the sphere of trade, the developing countries have sought to achieve special recognition and attitude within the multilateral system to address their own structural and systemic problems. However, the influence of global institutionalization within the framework of WTO on the foreign trade of member countries remains debatable. The article aims its research at the influence of global institutionalization within the framework of WTO on the foreign trade flows of Ukraine. The objective is to assess the influence of the global institutionalization within the framework of WTO on the foreign trade of Ukraine and to elaborate a roadmap to improve the national institutional environment. The main method is gravitational modelling. The Index of Economic Freedom of The Heritage Foundation, the Global Competitiveness Index of the World Economic Forum and the global indicators of the World Bank are used separately in the built models as institutional variables. All models also contain fictitious variables that indicate membership in the WTO or the regional trade agreements (RTA) of two countries. The sample includes all the countries that have been trading partners of Ukraine for the last 20 years. The following results are obtained: 6 gravitational models are built, allowing to calculate the possible growth rate of Ukrainian exports due to approximation of the institutional variables of Ukraine to the Central European level and to develop a roadmap to improve the national institutional environment. The calculated increase percentage shows that te global institutionalization within the framework of WTO can have a positive influence on Ukraine’s foreign trade flows, and gravity modelling can facilitate the determining how to improve the national institutional structure of Ukraine.

Keywords: global institutionalization, institutions, national institutional environment, World Trade Organization (WTO), foreign trade, Ukraine.

Fig.: 1. Formulae: 4. Bibl.: 22.

Sholom Alina S. – Candidate of Sciences (Economics), Senior Lecturer, Department of International Economic Relations named after Artur Holikov, V. N. Karazin Kharkiv National University (4 Svobody Square, Kharkіv, 61022, Ukraine)
Email: [email protected]
Kazakova Nadezhda A. – Candidate of Sciences (Geography), Associate Professor, Head of the Department, Department of International Economic Relations, V. N. Karazin Kharkiv National University (4 Svobody Square, Kharkіv, 61022, Ukraine)
Email: [email protected]

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